A company is considering Denver, Seattle, and Portland as candidate locations for a new facility.

The weighted-factor rating technique multiplies every site's score for each decision criterion by the assigned importance weight and then adds the weighted values.

For Denver :

(90 × 0.5) + (77 × 0.3) + (65 × 0.2)

= 45 + 23.1 + 13

= 81.1

For Seattle :

(87 × 0.5) + (82 × 0.3) + (70 × 0.2)

= 43.5 + 24.6 + 14

= 82.1

For Portland :

(84 × 0.5) + (86 × 0.3) + (75 × 0.2)

= 42 + 25.8 + 15

= 82.8

Portland therefore ranks first with 82.8, Seattle ranks second with 82.1 , and Denver ranks third with 81.1. Thus, B is correct.

Weighted-factor analysis is valuable when location decisions involve several competing criteria that cannot be assessed using cost alone. The weighting process makes strategic priorities explicit and provides a consistent comparative framework across alternatives. The same problem and ranking are confirmed in facility-location instructional material.

Reference Topic: Supply Chain Strategy and Global Context — Weighted-Factor Facility Location Analysis.

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